If, like us, you are in a situation where one partner has entered an IVA whereas the other has not, then joint debts cause major problems.
In our case, we had a joint current account. Whilst my wife is not insolvent, I am and so the bank is chasing her as well as we are both "jointly and severably liable" for the debt that existed at the time of the IVA.
The net effect of this has been significant. Not only has it taken numerous phone calls from my wife to the bank to try and resolve her liability (and now over a year later we seem no nearer to a resolution) her debt has now damaged her credit rating to the point where she cannot get a new mobile contract etc.
This is causing us considerable pain and looking back I am disappointed that clear and unambiguous information about the likely impact of this joint debt was never given. In fact I would go so far to say that our IVA provider gave the impression that including the joint account in the IVA would deal with the debt - it clearly hasn't.
We are where we are. All I can advise is that if you are in a similar position you should press your IVA provider for confirmation of what will happen to joint debts before proceeding. I guess this doesn't matter if both parties are entering into an IVA.
With the benefit of hindsight, we should have negotiated with the bank before the IVA in order to get this settled.
Has anyone else had similar or differing experiences?
Debt problems, what debt problems? I'm not in De Thames, I'm in De Nile.
Hi thefsg, I'm sorry to hear that this is causing considerable pain for you both. I'm sure others will be in a similar position and I'm sure out professionals will be along very soon. We're in an interlocking IVA so haven't experienced this. Hope you're keeping well? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi
You raise a very good point and one that not everyone is aware of. With any joint debt each party is jointly and severably liable for the full amount, many people think that liability is 50% each. Also if one person, as in your case, deals with their debt in bankruptcy an IVA or a DMP the other party will still be chased for the full debt.
Who was your IVA provider ?
Regards
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I am deliberately choosing not to respond to this post - instead I have e-mailed my client directly in an attempt to understand where any misunderstanding may have arisen from - as I personally dealt with this matter at the outset of the IVA in question.
this is really a case of poor advice bordering on misselling.
it should be a fundamental rule that where joint liability is established other liable parties should also be entering into a similar arrangement or it basically renders the whole arrangement pointless,apart from of course having to pay back the full amount with ip fee's added on top.
Last edited by lil.me on Sun May 16, 2010 1:58 am, edited 1 time in total.
Being midway in an IVA with Melanie as my IP, I can 100% say that the OP would have been given excellent advice in respect of all aspects of an IVA and any consequence of the partner not entering into an arrangement. This in my opinion would not be a case of misselling or poor advice.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I agree with Lesley. No way would Mel or anyone on her team not have given proper advice about this.
This is something mentioned on the forum frequently as well, and the advice is always given that both parties are jointly and seperately liable for those debts.
It is not misselling at all.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I agree with Lesley and Jan - there's no way that Mel or her team would not give the correct information or 'mis-sell' an IVA.
Lil.me, very few IVA's are actually 'mis-sold', any problems are usually down to a misunderstanding. Are you actually in an IVA as I've noticed that you are very cynical towards them.
Skippy wrote:
I agree with Lesley and Jan - there's no way that Mel or her team would not give the correct information or 'mis-sell' an IVA.
Lil.me, very few IVA's are actually 'mis-sold', any problems are usually down to a misunderstanding. Are you actually in an IVA as I've noticed that you are very cynical towards them.
im not cynical at all towards them its just that things should be done correctly,an iva is a superb tool used in the correct way but this iva clearly should never have been put forward in this way.
people make mistakes but the problems faced here should be forseen quite easily and i do find it annoying when people in a fragile financial condition,who put themselves at the mercy of a professional are put into a worse position than when they started.
i think Mel knows she has made a mistake in the way this iva was proposed and i have a lot of sympathy for the person who is in this particular "meaningless" iva.
i know you hold mel in high regard but if this was an iva put forward by another company im sure you would see it as a flawed proposal.
Last edited by lil.me on Sun May 16, 2010 1:18 pm, edited 1 time in total.
I can't comment if the IVA is meaningless as we don't know the value of debt that was in joint names.
I'm sure Melanie will do all she can to help thefsg off forum.
i hope so too,we all make mistakes,its not the mistakes we make its what we learn from them and how we resolve them.
as ive said an iva is a superb tool used correctly and perhaps the problem higlighted here should be a standard test that should be ticked off before an iva proposal is put forward.
Melanie would not have mislead anyone, and I don't think she has made a mistake with her proposal.
And no, she is not my IP!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
